Sebi confirms raids against entities involved in pump and dump scam

The raids primarily involved 15-20 shell companies which were allegedly created by promoters of certain listed companies to pump and dump their own shares and few operators

Market regulator Securities and Exchange Board of India (SEBI) has confirmed about raids in the matter of pump and dump scam. Moneycontrol had reported on June 19, that SEBI had conducted such raids in multiple cities.

In a statement on June 27, the regulator said, “It is hereby clarified that SEBI has conducted search and seizure operations at multiple locations in the month of June 2025 in connection with pump and dump in certain scrips and has seized incriminating evidence”.

In pump and dump the operators involved artificially inflate the share price of stocks and create a false narrative about the bright prospects of the company and then slowly dump the stocks on public shareholders and price crashes and common investors are trapped.

Moneycontrol had reported that SEBI conducted raids across Ahmedabad, Mumbai and Gurugram to bust a Rs 300 crore pump and dump racket on June 18. These raids were the biggest carried out by the regulator in terms of monetary value, sources had said then.

The raids primarily involved 15-20 shell companies which were allegedly created by promoters of certain listed companies to pump and dump their own shares and few operators. SEBI had seized several documents including company documents, rubber stamps. Preliminary assessment suggested the scam was at least Rs 300 crore, however more details would emerge once the seized documents are analysed by SEBI. The regulator said said, “investigation in the matter is under progress”.